Signal: Foot Locker Stock Rally Might Not Last

Core Viewpoint - Foot Locker Inc's stock experienced a significant surge due to a surprise tariff deal between the U.S. and China, but it still faces substantial year-over-year and year-to-date declines [1] Group 1: Stock Performance - Foot Locker's stock rose 10.6% on Monday and is currently trading at $13.39, marking an 8.7% increase in May [1] - Despite the recent gains, the stock has a 41.3% deficit year-over-year and is down 38.7% year-to-date [1] Group 2: Technical Analysis - The stock is approaching a historically bearish trendline, specifically its 50-day moving average, which has been a critical level in the past [2] - In the last three years, similar approaches to this trendline have resulted in a decline 77% of the time, averaging a 6.5% drop one month later [2] - A comparable decline from the current price could bring shares below$ 12.50, close to their 15-year low of $11 reached on April 16 [2] Group 3: Options Market Sentiment - The 10-day put/call volume ratio for Foot Locker is at 14.77, ranking in the 96th percentile of annual readings, indicating unusually bullish sentiment among short-term options traders [3] - This lopsided optimism in the options market could create headwinds for the stock in the event of a pullback [3]